Want to invest in TRENT? Consider as it delivered good returns
18 Jan, 201913 min read
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TRENT LTD delivered good returns on Friday. It grew by +1.04% to close at 359.0. It is currently trading +20% above it's 52 week low of 299.0 and is down only -4% from it's 52 week high.
TRENT showed a up trend over the last 3 months. During this period TRENT grew by +8.67% and saw a maximum drawdown of -6.25%. There was a long signal during this period which returned +6.12%.
TRENT has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, TRENT outperformed the NIFTY-50 index on 47% days. Which indicates that on days TRENT outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months TRENT delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.59%) was on Friday, 28 Dec, 2018. While it's worst loss in the same period (of -2.32%) was on Thursday, 6 Dec, 2018. There was initially a bearish trend during this period which started on 16 Nov, 2018 and went on till 22 Nov, 2018. The trend delivered -3.41% losses to investors. This was followed by a bullish trend that started on 26 Nov, 2018 and ended on 29 Nov, 2018. This bullish trend delivered +6.15% to investors.
On monthly basis, TRENT delivered profits and losses in equal number of months. TRENT delivered profits in more months than NIFTY-50 index. TRENT significantly outperformed NIFTY-50 index in Jul 2018, when it returned +11.94% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. TRENT and NIFTY-50 index, both had periods of 2 consecutive profitable months.
"Watch your finances like a hawk.
TRENT is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant surge in TRENT's volatility from 12 Nov, 2018 to 13 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that TRENT has significant negative skewness in it's return distribution. This indicates that TRENT is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than TRENT. Therefore, NIFTY-50 must receive a lower allocation than TRENT in your portfolio. NIFTY-50 index usually has shorter drawdown period than TRENT.
On a general note (since you are interested in TRENT), two mid cap instruments that deserve special mention are HATSUN and BATAINDIA. They have significantly outperformed the overall market.
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